Preliminary results for the year ended 29 January 2011
24 March 2011
Kingfisher reports full year adjusted pre-tax profits up 23% to £670 million and dividends up 29% for the full year. Outlines key themes of the next phase of its development after 'Delivering Value'
Group Financial Summary
|2010/11||2009/10||% Total Change
|% Total Change
|Adjusted pre-tax profit||£670m||£547m||+22.5%|
|Adjusted basic EPS||20.5p||16.4p||+25.0%|
|Full year dividend||7.07p||5.5p||+28.5%|
|Net cash/(Financial net debt)||£14m||£(250)m||n/a|
Note: Joint Venture (Koçtaş JV) and Associate (Hornbach) sales are not consolidated. Retail profit is operating profit stated before central costs, exceptional items, amortisation of acquisition intangibles and the Group's share of interest and tax of JVs and associates. Adjusted measures are before exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles, related tax items and tax on prior year items. A reconciliation to statutory amounts is set out in the Financial Review.
Highlights (in constant currencies):
- Self-help initiatives delivered robust growth in profit, strong cash generation and 130 bps higher return on capital
- Strong growth achieved in each of the three main operating divisions:
- French retail profits up 12.0% to £348 million driven by good sales growth and continuing margin initiatives
- UK & Ireland retail profits up 11.8% to £243 million. B&Q retail profit margin continued to improve, benefitting from margin and cost initiatives. 'TradePoint' nationally rolled out into all B&Q stores. Screwfix profits up 24.7%
- Other International retail profits up 34.3% to £171 million driven by profit growth in Poland despite a particularly difficult first half, strong profit growth in Spain and Turkey and a material reduction in China losses, where the repositioning plan remains on track
- Free cash flow of £407 million, £679 million of outstanding bonds and loans repaid
- Full year dividend up 28.5%, ahead of growth in adjusted earnings. Dividend cover reduced to 2.9 times and to be lowered to 2.7 times over the medium-term
- Property portfolio independently valued at £3.3 billion (2009/10: £3.0 billion)
- Good progress in the second full year of the three year 'Delivering Value' programme. Activities to drive the next phase of Kingfisher's development now being mobilised, ready to commence on completion of the 'Delivering Value' phase in January 2012
|Profit before taxation||£671m||£566m||+18.6%|
|Profit for the year||£491m||£385m||+27.5%|
Note: A reconciliation to adjusted measures is set out in the Financial Review.
Ian Cheshire, Group Chief Executive, said:
"We have delivered another year of strong profit growth and cash generation in what continue to be challenging times for our customers around the world.
"Our 'Delivering Value' programme of self-help has been a great success so far with profits almost doubled since it started, return on capital up sharply and financial net debt eliminated. Despite significant economic headwinds over the last few years we are now a stronger, more valuable business. I am also delighted that we are now better able to accelerate our expansion where economic returns have been proven whilst also significantly increasing our dividend for our shareholders, many of whom are now our own colleagues.
"Looking ahead, although I see no let up in the challenging environment in the short-term, I am excited by our future prospects. This year we will be stepping up the pace once more with a full set of activities in the final year of the first phase of 'Delivering Value' as well as mobilising the second phase, which is due to start in 2012. I believe we have an exciting growth opportunity, sustainable over the longer term, by creating a business that is the world's expert at making home improvement easier for customers. We are uniquely placed to use our scale, our network of international experience and our diversity for the benefit of our customers and shareholders."
Ian Harding, Group Communications Director
020 7644 1029
Sarah Gerrand, Head of Investor Relations
020 7644 1032
Nigel Cope, Head of Media Relations
020 7644 1030
Clare Haines, Media Relations Officer
020 7644 1286
020 7404 5959
Further copies of this announcement can be downloaded from www.kingfisher.com or by application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX. A video interview of Ian Cheshire is available on the website.
The remainder of this release has five main sections: